Current Law Cases
|
Scope |
Lloyds Names; husband and wife; wife
introduced as name by husband; test of presumed undue influence in special
relationship not satisfied |
|
Case |
Society of LloydÕs v Khan |
|
Court |
(QBD (Comm Ct)) Commercial Court |
|
Jurisdiction |
|
|
Judgment |
March 4, 1998 |
|
Judges |
Tuckey, J. |
|
Legislation |
Insolvency Rules 1986 (SI 1986 1925) r.6.5(4) |
|
Reported |
[1999] 1 F.L.R. 246; [1998] 3 F.C.R. 93;
[1999] Fam. Law 92; (1998) 162 J.P.N. 321 |
|
Reference |
|
|
Abstract |
K's husband, who was more than 30 years older
and far more experienced in business matters than K introduced her as a
member of Lloyds. He dealt with all matters connected to her membership,
including directing her as to when and where to sign the application form and
keeping for himself money paid out to her under the membership. She received
no independent advice on becoming a member. The question for the court was
whether K had an arguable defence of undue influence to Lloyds' application
for summary judgment for her underwriting losses. Held, allowing the application, that K had
shown no arguable defence. She failed to demonstrate that by her husband's
influence she had been put at a manifest disadvantage by a transaction that
was so unwise as to be beyond the ordinary motives of ordinary men and women.
Equally, she was unable to show that Lloyds had constructive notice of the
undue influence, since the transaction was not on the face of it detrimental
to her, nor was there a substantial risk that it was the type of transaction
likely to be procured by undue influence. The normal remedy of rescission was
not available to K because of the personal nature of the benefits of
membership of Lloyds, Society of LloydÕs v Leighs [1997] 6 Re L.R. 289,
[1997] C.L.Y. 3149 applied. |
|
Subject |
Insurance |
|
Keywords |
Lloyds Names, Spouses, Undue influence |
|
Counsel |
For L: David Foxton. For K: In person. For T:
Mark Watson-Gandy Solicitors |
|
Solicitors |
For L: Dibb Lupton Alsop. For K: Tennakoons |
|
Sub nomt |
Lloyd's of London v Khan |
|
Cases cited |
Society of LloydÕs v Leighs [1997] 6 Re L.R.
289, [1997] C.L.Y. 3149 |